The world’s leading art market expert shares insights on ‘How to Collect Art’ in affordable paper

Whether it’s an original Leonardo da Vinci work, a copy, or a workshop painting, there’s no denying that more than $450 million is being paid for Savior of the world storing oil on the panel in a yacht is shameful and absurd. Everyone from Saudi Arabian royalty to first-time collectors can benefit from sage advice on navigating the notoriously inefficient and unpredictable global art market.

“Investing in art can be profitable, but that’s mostly for a select few at the top of the market, usually artists represented by the same five to ten galleries. The remaining works of art, which make up 99.9% of available pieces, generally do not share the same investment potential, “said Magnus Resch, an economist, entrepreneur and author of best-selling books, world leader of the art market. ” While buying what you truly adore is the recommended approach, my book delves into strategies to ensure you don’t overspend on any art purchase”

How to collect art by Resch, with an introduction by businessman and art collector Pamela J. Joyner, follows Resch’s 2021 book, How to become a successful artistAND Management of Art Galleries (2016), also published by Phaidon and provides a unique perspective on a market that can be intimidating, especially for newcomers. Resch, a lecturer at Yale University who previously taught at Columbia, breaks down the basics to help aspiring art owners build a collection.

At $34.95, the 232-page jamada offers more than a one-time value, empowering potential buyers with the skills to seek out and purchase artwork at the best price, and for aesthetic pleasure and deep fulfillment. Resch conveys complex concepts and variables in a thoughtful and accessible voice bolstered by a deep well of research and knowledge, avoiding jargon and insider arrogance.

“I call it responsible buying, the notion that buying art is not just an exchange of monetary value, but also an act of philanthropy. Far from putting money into an asset, I donate it, knowing that in all likelihood I will not be able to resell the work, but by purchasing it, I am supporting the artist to continue creating art, which from the other side inspires. its artistic community to continue with this essential form of human creativity”, Resch. “For me, it’s a way to do good and it comes with an object that I love and a story to tell.”

The United States was the leading art market worldwide in 2023, generating 42% of the world art market value, followed by China at 19%, and the United Kingdom at 17%, according to Statista. The global art market is more dynamic than ever, with over 763,000 works of art changing hands, according to Artprice. However, new entrants face fears and questions in a market that thrives on sparking controversy and celebrating record sales that drive away most would-be collectors.

For my book, I examined 500,000 artists and their pricing strategies to discover the key factors that determine what makes an artist a great investment. Our findings revealed that an artist’s success is closely related to the network of galleries they are associated with. Collecting from this network significantly increases the likelihood of a positive return on your investment. Pricing in this category typically starts at over $100,000,” explained Resch.

I am fascinated by the creative process and witnessing how artists create their work, and this link underlines my desire to acquire some works. Resch clearly agrees.

“As a collector, the artist becomes a crucial counterpart in your purchase. In line with the concept of responsible shopping, acquiring artwork means embracing the emotional essence that the artist represents, along with becoming part of the artist’s surrounding network,” said Resch. “Therefore, getting to know the artist should be a integral aspect of your collecting journey. Furthermore, most artists enjoy meeting their buyers.”

Resch offers sound advice on the essential questions a potential buyer should ask before considering a purchase.

Do I like the work, the gallery and the artist? In which institutions has the artist exhibited? Does the asking price match my budget? In my book, I present a framework to assist readers in evaluating price points and evaluating the fairness of the asking price,” recommended Resch. “Armed with this knowledge, navigating the art market becomes a safer and more enjoyable experience. informed. This enables you to spend money with a clear understanding of the artwork’s value, ensuring a purchase that resonates with both personal taste and financial sense.”

Calculating the price of a work of art is a multifaceted process that varies considerably and may not be considered by the buyer. Buying any work of art is an investment, even if the intention is not to sell at a higher price at a later date, and furthermore, it is an allocation of funds that works differently than a typical benchmark asset class, metrics and risk considerations. Don’t panic when spending your hard earned money.

In the art market, it is common for clients to ask for and receive a 10% discount, especially if the client chooses immediate payment,” advised Resch. “Discounts do not extend only to a select few highly sought-after artists. It is important to note that customers usually bear the shipping costs.”

Knowing the intricacies of any art sale, some people can benefit from working with an art advisor who can demystify the journey and make it a joyful experience.

Hiring an art consultant can be beneficial for two main reasons. First, for education: young collectors often appreciate the research done by art advisors on their behalf. Second, for access: artists in high demand are often only available to collectors with established relationships with dealers and credibility with galleries, which an advisor can provide,” Resch said. “I would argue that no you need an advisor if you plan to spend less than $100,000 a year. Exploring galleries, engaging with artists, and discovering new talent on Instagram is an integral part of the journey, and it’s fun.”

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